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Stock Options, Stock Appreciation Rights and Restricted Shares (Tables)
 3 Months Ended
Mar. 31, 2013
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract]  
Summary of Stock Option and Stock Appreciation Rights Activity
As of March 31, 2013, there were approximately 1,195,500 stock options and 7,100 stock appreciation rights outstanding to purchase common shares.  A summary of the stock option and stock appreciation rights activity within the equity incentive plans during the three months ended March 31, 2013 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows:

 
Number
 
 
Weighted-
Average
Exercise
Price
 
 
Weighted-
Average
Contractual
Remaining Term
(in years)
 
 
Aggregate
Intrinsic
Value
(000's)
 
Outstanding at December 31, 2012
 
 
1,318,701
 
 
$
23.36
 
 
 
3.14
 
 
$
2,203
(1)
Granted
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercised
 
 
(88,811
)
 
 
 
 
 
 
 
 
 
 
 
 
Stock appreciation rights exercised
 
 
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited
 
 
(27,258
)
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at March 31, 2013
 
 
1,202,598
 
 
$
24.36
 
 
 
2.98
 
 
$
2,825
(2)
Outstanding and expected to vest as of March 31, 2013
 
 
1,202,598
 
 
$
24.36
 
 
 
2.98
 
 
$
2,825
(2)
Options exercisable at March 31, 2013
 
 
1,202,598
 
 
$
24.36
 
 
 
2.98
 
 
$
2,825
(2)
 
(1)  
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $18.84 per common share at December 31, 2012 for the approximately 331,571 options and stock appreciation rights that were in-the-money at December 31, 2012.
(2)  
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $23.36 per common share at March 31, 2013 for the approximately 459,871 options and stock appreciation rights that were in-the-money at March 31, 2013.
Summary of activity for unvested restricted share awards
A summary of activity for unvested restricted share awards for the quarter ended March 31, 2013 is as follows:

 
Number
 
 
Grant Date Weighted-Average Cost
 
Unvested at December 31, 2012
 
 
739,909
 
 
$
15.45
 
Shares awarded
 
 
125,765
 
 
 
19.91
 
Conversion of restricted share units to restricted share awards
 
 
193,189
 
 
 
21.51
 
Restrictions lapsed and shares released to associates/directors
 
 
(146,564
)
 
 
16.72
 
Shares forfeited(1)
 
 
(44,409
)
 
 
15.10
 
Unvested at March 31, 2013
 
 
867,890
 
 
$
16.97
 
(1)  
Represents 18,257 shares forfeited due to failure to meet performance targets and 26,152 shares forfeited due to employee termination and/or retirement.

Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and performance vesting criteria. The following table outlines restricted stock grants that were made, grouped by similar vesting criteria, during the three months ended March 31, 2013:

Grant
Year
Group(1)
 
Vesting
Period in years
 
 
Shares
awarded
 
 
Restrictions Lapsed and shares released to participants
 
 
Shares Forfeited by participants(5)
 
 
Shares Unvested
 
Time Based Awards(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
Associates
 
 
5
 
 
 
114,475
 
 
 
-
 
 
 
2,025
 
 
 
112,450
 
Performance Based Awards(3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
Leadership team
 
 
5
 
 
 
193,189
 
 
 
-
 
 
 
-
 
 
 
193,189
 
Outside Director Awards(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
Outside directors
 
 
1
 
 
 
11,290
 
 
 
-
 
 
 
-
 
 
 
11,290
 
  
(1)  
Groups include our employees (referred to as associates above) and our outside directors.  When the restricted shares are awarded, a participant receives voting rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed.  Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell shares to pay the applicable income taxes associated with the award.
(2)  
These shares vest in equal annual installments on the anniversary date of the grant.
(3)  
The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period (or alternatively, the cumulative vesting period).
(4)  
Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan.  Restrictions lapse on the one year anniversary date of the award based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend.
(5)  
These shares represent forfeitures resulting from associate terminations during the three months ended March 31, 2013.